§ 720. Obligations of Association

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1974

   Regional Rail Reorganization Act of 1973

   Pub. L. 93–236 title II § 210 · 87 Stat. 985

   Enacted · 45 U.S.C. § 720

   Pub. L. 93–236, title II, § 210, Jan. 2, 1974, 87 Stat. 1000

   Source evidence

   Code source credit
   Pub. L. 93–236, title II, § 210, Jan. 2, 1974, 87 Stat. 1000

   Enacted provision · exact public law section
   Sec. 210. obligations of the association (a) General.— To carry out the purposes of this Act, the Association is authorized to issue bonds, debentures, trust certificates, securities, or other obligations (herein cited as “obligations”) in accordance with this section. Such obligations shall have such maturities and bear such rate or rates of interest, as are determined by the Association with the approval of the Secretary of the Treasury. Such obligations shall be redeemable at the option of the Association prior to maturity in the manner stipulated in each such obligation, and may be purchased by the Association in the open market at a price which is reasonable. (b) Maximum Obligational Authority.— Except as otherwise provided in the last, sentence of this subsection, the aggregate amount of obligations of the Association issued under this section which may be outstanding at any one time shall not exceed $1,500,000,000 of which the aggregate amount issued to the Corporation shall not exceed $1,000,000,000. Of the aggregate amount of obligations issued to the (Corporation by the Association, not less than $500,000,000 shall be available solely for the rehabilitation and modernization of rail properties acquired by the Corporation under this Act and not disposed of by the Corporation pursuant to section 206(c)(1)(C) of this Act. Any modification to the limitations set forth in this subsection shall be made by joint resolution adopted by the Congress. (c) Guarantees.— The Secretary shall guarantee the payment of principal and interest on all obligations issued by the Association in accordance with this Act and which the Association requests be guaranteed. (d) Validity.— No obligation issued by the Association under this section shall be terminated, canceled, or otherwise revoked, except in accordance with lawful terms and conditions prescribed by the Association. Such an obligation shall be conclusive evidence that it is in compliance with this section, has been approved, and is legal as to principal, interest, and other terms. An obligation of the Association shall be valid and incontestable in the hands of a holder, except as to fraud, duress, mutual mistake of fact, or material misrepresentation by or involving such holder. (e) The Secretary of the Treasury.— If at any time the moneys available to the Secretary are insufficient to enable him to discharge his responsibilities under subsection (c) of this section, he shall issue notes or other obligations to the Secretary of the Treasury in such forms and denominations, bearing such maturities, and subject to such terms and conditions as may be prescribed by the Secretary of the Treasury. Such obligations shall bear interest at a rate to be determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of such obligations. The Secretary of the Treasury is authorized and directed to purchase any such obligations and for such purpose is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended. The purposes for which securities may be issued 40 Stat. 288. 31 USC 774. under such Act are extended to include any purchase of notes or other obligations issued under this subsection. At any time, the Secretary of the Treasury may sell any such obligations, and all sales, purchases, and redemptions of such obligations by the Secretary of the Treasury shall be. treated as public debt transactions of the United States. (f) Authorization for Appropriations.— There are hereby authorized to be appropriated to the Secretary such amounts as are necessary to discharge the obligations of the United States arising under this section. (g) Lawful Investments.— All obligations issued by the Association shall be lawful investments and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority and control of the United States or any officer or office re thereof. All such obligations issued pursuant to this section shall be exempt securities within the meaning of laws administered by the Securities and Exchange Commission.

2. 1976

   Railroad Revitalization and Regulatory Reform Act of 1976

   Pub. L. 94–210 § 604 · 90 Stat. 31

   Substituted · 45 U.S.C. § 720(b)

   Pub. L. 94–210, § 604, substituted provisions authorizing $275,000,000 as maximum of aggregate amount of obligations outstanding at any one time and provisions relating to availability or issuance after Feb. 5, 1976, for provisions authorizing $1,500,000,000 as maximum of aggregate amount of obligations outstanding at any one time and provisions relating to limitations on amounts issued to Corporation and available for rehabilitation and modernization of rail properties

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 94–210, § 604, substituted provisions authorizing $275,000,000 as maximum of aggregate amount of obligations outstanding at any one time and provisions relating to availability or issuance after Feb. 5, 1976, for provisions authorizing $1,500,000,000 as maximum of aggregate amount of obligations outstanding at any one time and provisions relating to limitations on amounts issued to Corporation and available for rehabilitation and modernization of rail properties.

   Enacted provision · exact public law section
   Sec. 604. obligations of the association Section 210(b) of such Act (45 U.S.C. 720(b)) is amended to read as follows: “(b) Maximum Obligational Authority.— The aggregate amount of obligations of the Association issued under this section which may be outstanding at any one time shall not exceed $275,000,000. No obligations or proceeds thereof shall be issued or made available after the date of enactment of the Railroad Revitalization and Regulatory Reform Act of 1976 except— Ante, p. 31. “(1) to meet existing or potential commitments for loans under section 211 of this title made or applied for prior to January 1, Post, p. 92. 1976; and “(2) for the purpose of providing loans pursuant to subsections (g) and (h) of section 211 of this title.”.

3. 1976

   Railroad Revitalization and Regulatory Reform Act of 1976

   Pub. L. 94–210 § 607(k) · 90 Stat. 31

   Inserted · 45 U.S.C. § 720(c)

   Pub. L. 94–210, § 607(k), inserted provisions relating to guarantees as general obligations of the United States and pledge of full faith and credit for payment

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 94–210, § 607(k), inserted provisions relating to guarantees as general obligations of the United States and pledge of full faith and credit for payment.

   Enacted provision · exact public law section
   (k) Section 210(c) of such Act (45 U.S.C. 720(c)) is amended by Guarantees. adding at the end thereof the following new sentence: “All guarantees entered into by the Secretary under this section shall constitute general obligations of the United States for the payment of which its full faith and credit are pledged.”.

4. 1976

   Rail Amendments of 1976

   Pub. L. 94–555 title II § 203(e) · 90 Stat. 2613

   Inserted · 45 U.S.C. § 720(b)

   Pub. L. 94–555 inserted “(exclusive of interest or additions to principal on account of accrual of interest)” after “aggregate principal amount”, and raised maximum amount allowed for outstanding obligations issued by Association to $395,000,000

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 94–555 inserted “(exclusive of interest or additions to principal on account of accrual of interest)” after “aggregate principal amount”, and raised maximum amount allowed for outstanding obligations issued by Association to $395,000,000.

   Enacted provision · exact public law section
   (e) The first sentence of section 210(b) of the Regional Rai) Reorganization Act of 1973 (45 U.S.C. 720(b)) is amended to read as follows: “The aggregate principal amount (exclusive of interest or additions to principal on account of accrual of interest) of obligations issued by the Association under this section wliich may be outstanding at any one time shall not exceed $395,000,000.”.

5. 1980

   Staggers Rail Act of 1980

   Pub. L. 96–448 title VII § 703(f)(3) · 94 Stat. 1895

   Inserted · 45 U.S.C. § 720(e)

   Pub. L. 96–448 inserted “or under subsection (a) of section 746 of this title” after “subsection (c) of this section”

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 96–448 inserted “or under subsection (a) of section 746 of this title” after “subsection (c) of this section”.

   Enacted provision · exact public law section
   (3) Section 210(e) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 720(e)) is amended by inserting immediately after “section” in the first sentence thereof the following: “or under subsection (a) of section 306 of this Act”.

   Effective date note
   Amendment by Pub. L. 96–448 effective Oct. 1, 1980, see section 710(a) of Pub. L. 96–448, set out as a note under section 1170 of Title 11, Bankruptcy.

5 of 5 references resolved to an enrolled provision